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| Economy |
| Geithner's Fed Told AIG to Conceal CDS Payoffs |
| 2010-01-07 |
| Jan. 7 (Bloomberg) -- The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer's payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show. |
| Posted by:Anguper Hupomosing9418 |
| #5 More from the economist's conference: Simon Johnson, an economist at MIT's Sloan School of Business, said that by propping up the financial sector, government efforts to date are only delaying another inevitable crash. By giving large financial institutions the assurance that they are too big to fail, and thereby offering an implicit guarantee to excess risk-taking, the administrations of Presidents George W. Bush and Barack Obama have made the problem worse. "The crisis is just beginning," Johnson said. "Have bankers won? In the short-term, absolutely. The immediate opportunity for change has already been missed." That's because a broken political system leaves politicians beholden to the financial industry, argued Joseph Stiglitz, Nobel laureate and professor of economics at Columbia University. |
| Posted by: Anguper Hupomosing9418 2010-01-07 18:33 |
| #4 The details would have been used in real time to analyze who was most at risk, triggering runs. |
| Posted by: Nimble Spemble 2010-01-07 18:02 |
| #3 It was pretty clear at the time this was what the money was being used for. If it was so 'clear' why were the details withheld? We're still on the verge of a banking collapse, in any case. The Fed has just been buying time |
| Posted by: Anguper Hupomosing9418 2010-01-07 17:34 |
| #2 I'm shocked, shocked to find out there's bad debts being covered. It was pretty clear at the time this was what the money was being used for. The alternative was a true banking collapse. The correspondence includes e-mails between AIGÂ’s Shannon and attorneys at the New York Fed and its law firm, Davis Polk & Wardwell LLP. The Fed does not use DoJ? And what happened to attorney client privilege? |
| Posted by: Nimble Spemble 2010-01-07 16:46 |
| #1 hang em' high........... |
| Posted by: armyguy 2010-01-07 16:20 |